Government has repeatedly changed and deferred its plans for the introduction of full import controls following the UK’s exit from the European Union (EU). This has caused uncertainty for businesses and extra costs for government and ports, according to a new National Audit Office (NAO) report.
The UK’s exit from the EU resulted in changes to how goods and services are traded between the two territories.
Government is currently operating a partial import control regime after delaying the implementation of full controls five times since the end of the EU exit transition period on 31 December 2020.
It estimates that it will have spent at least £4.7 billion to implement new arrangements and improve the management of the border, but has not yet specified when it intends to have a full regime in place.
The repeated delays in introducing import controls, and difficulties forecasting requirements, have resulted in government expenditure on infrastructure and staff that were ultimately not needed.3 Late announcements about policy and uncertainty about the implementation of controls have also reduced the ability of businesses and ports to prepare for changes.
Gareth Davies, head of the NAO, said: “The UK leaving the EU created a large-scale change in arrangements for the movement of goods across the border. However, more than three years after the end of the transition period, it is still not clear when full controls will be in place.
“The border strategy has ambitious plans to use technology and data to facilitate trade while managing risks. To achieve its objectives, government requires strong delivery and accountability – including a more realistic approach to digital transformation – together with effective monitoring to enable future improvements.”
Though post EU exit border processes (including the introduction of full customs controls) have operated relatively smoothly, businesses trading goods between the UK and the EU have faced additional costs and administrative burdens.
Jennifer Pheasey, Director of Public Affairs at the Horticultural Trades Association (HTA), commented: “The HTA welcomed the opportunity to contribute to this important audit of UK government policy and delivery of border changes. As the report highlights, the costs to the UK and businesses are huge, and too many questions about effectiveness remain. Those importing SPS goods, which for us are plants and plant products, have experienced massive hikes in costs and administrative burdens since January 2021, compounded by border changes in April 2024. This directly impacts the competitiveness of our sector and its ability to invest and grow.
“The report highlights our significant concerns over the ability of at-border checks to deliver biosecurity and the free flow of trade. As we set out in our letter to the Minister just a few days ago, our confidence in this is low. We need urgent engagement and action on both near-term fixes and longer-term solutions, such as an accessible trusted trader scheme or other easements.
“The report raises significant doubts over the ability to fulfil crucial aspects of a UK border – such as the Single Trade Window. The environmental horticulture sector imports £770 million of plants and plant products annually, with 90% of our growers importing plants at some stage of the growing cycle. Nearly 100% are small and medium-sized enterprises (SMEs) and, in theory, subject to 100% checks and charges. We need a world-class border to ensure the environmental horticulture sector can thrive, given its substantial contributions to the UK economy, employment, environment, health, and wellbeing.”
